STM Group PLC – STM – Final Results

STM Group PLC – STM – Final Results

STM Group plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its audited final results for the 12 months ended 31 December 2020.

Financial Highlights:

 

2020 (reported)

2020
(underlying)**

2019
(reported)

2019
(underlying)**

Revenue

£24.0m

£24.0m

£23.2m

£22.9m

Profit before other items*

£3.6m

£4.0m

£3.5m

£4.2m

Margin

15%

17%

15%

18%

Profit before taxation ("PBT") (and exceptional bargain purchase gain)

£2.0m

£2.4m

£3.9m

£2.6m

Earnings per share

2.7p

N/A

5.73p

N/A

Cash at bank (net of borrowings)

£14.8m

N/A

£17.2m

N/A

Final dividend (2020) / second interim dividend (2019)

0.85p

N/A

0.75p

N/A

Total dividend

1.40p

N/A

1.50p

N/A

 

* Profit before other items is defined as revenue less operating expenses i.e. profit before taxation, finance income and costs, depreciation, amortisation, bargain purchase gain and gain on the call options

** Underlying statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in Table 2 below

Operational Highlights:

·    Stability of recurring revenue apparent through the Covid-19 virus

·    Focussed on keeping colleagues safe through working from home and following Governments' guidelines and maintaining customers service levels

·    The majority of our key IT projects for improved profitability are now live with the remaining concluding in the first half of 2021. Continued focus on technology to become a key differentiator.

·    UK orientated products - Shariah SIPP and Workplace Pension Plan ("WPP") solutions - now launched, with opportunity for international solution as well

·    WPP corporate business moving towards break-even

·    Flexible annuity pipeline building, but slower than anticipated conversion

·    Active pipeline of acquisition opportunities, particularly in the UK

·    Strategic focus on core activities of pension administration and life assurance, with post period end disposals of the CTS businesses

Commenting on the results and prospects for STM, Alan Kentish, Chief Executive Officer, said:

"Whilst the year has had challenges, we have achieved a great deal in progressing our three year transformation and growth strategy.  We see 2021 being a year where a number of strategic initiatives come to fruition that will build on efficiencies within the business. There is an energy and focus for the remainder of 2021 in building some key partnerships that will help drive new business volumes.  Additionally, our acquisition pipeline is active and expected to be a pillar of our future growth.

"The recent Judgment in the Carey v Adams case will have implications across the whole of the Financial Services industry who have dealings on an execution only basis.  This was a historical claim and the Options management team will continue to drive the business forward as they have done since being part of the STM team.

"STM is an increasingly streamlined and more focused business. The Board is optimistic for its future and looks forward to updating on progress in 2021."

No Comments

Post a Comment